The Character of Our Company Our Shared Responsibilities

2005 diversity annual report

the character of our company Our Shared Responsibilities

We have a responsibility to our clients

We must put our clients ﬁ rst, We have a responsibility provide superior advice, products to each other and services, and always act with the highest level of integrity. We must provide outstanding people the best opportunity to We have a responsibility realize their potential. We must to our franchise treat our teammates with respect, We must put Citigroup’s long-term champion our remarkable interests ahead of each unit’s short- diversity, share the responsibility for term gains and provide superior our successes, and accept results for our shareholders. accountability for our failures. We must respect the local culture and take an active role in the communities where we work and live. We must honor those who came before us and extend our legacy for those who will come after us. is found within Message from our Chief Executive Ofﬁ cer

One of the most important elements of Citigroup’s leadership has been our longstanding commitment to diversity.

Citigroup’s success—and the success of our entrepreneurial culture—depends not on the schools we attended and not on, among other things, our ethnicity, race, gender, sexual orientation, religion, physical abilities, or national origin.

Instead, our success depends on every employee being given the chance to succeed. It depends on each of us working together to deliver value for our clients and our shareholders, and feeling a sense of pride and fulﬁ llment in what we do.

For our clients, our diversity means a workforce that is 98 percent local in the 100 countries in which we operate, with employees who understand our clients’ needs and aspirations.

For our employees, our diversity means a culture where the best people want to work, where people are promoted on their merits, where we treat each other with respect, and where opportunities to develop are widely available to all—regardless of differences.

And for our franchise, our diversity means transferring knowledge and people from one part of the world to another so we can better serve the thousands of communities where our employees live and work.

As you’ll read in this report, we’ve made great progress embedding the principles of diversity and inclusion at Citigroup. We’ve done this by holding management accountable, by strengthening our efforts to attract and develop talent, and by creating innovative programs so our employees can share an even greater sense of pride and fulﬁ llment in what they do.

Our commitment to diversity will continue to be an enduring part of our success and a key element in Citigroup’s culture in the years to come.

Sincerely,

Chuck Prince Message from our Chief Diversity Ofﬁ cer

Three years ago at Citigroup, we shaped our diversity strategy along four lines—to be the employer, service provider, business partner, and neighbor of choice. By the end of 2005, we had made important progress toward achieving these goals.

2005 was the third consecutive year our senior managers developed diversity plans and reviewed their progress with our Board of Directors. We continued to attract top diverse talent through core partnerships, including with Black and Hispanic MBA organizations in the U.S.

Initiated in 2002, our employee network program has grown to include 26 networks in the U.K. and U.S., with more than 8,000 members, a 52 percent increase over 2004. And as part of our efforts to improve our work environment, we launched a global initiative on ﬂ exible work in 2005 by developing a common set of guidelines, tools, and resources through which employees and managers can consider and strengthen their ﬂ exible work strategies.

The year 2005 also saw us reinforce our diversity efforts with our business partners. We did this by creating opportunities among afﬁ nity markets and continuing to focus on Supplier Diversity, surpassing $950 million in spending with business enterprises owned by minorities, women, disabled veterans, and other people with disabilities—an increase of 200 percent over the last four years.

We celebrated important milestones during the year. Citigroup was inducted into Working Mother magazine’s Hall of Fame to honor our 15th time on its list of “100 Best Companies for Working Mothers.” Citigroup received a 100 percent ranking on the Human Rights Campaign’s Corporate Equality Index and, once again, we received high marks from DiversityInc magazine, which ranked us third on its list of best companies for diversity. We also shared both a number two ranking overall and a number one ranking for top investment bank in the 2005 Stonewall Corporate Equality Index, a U.K.-wide benchmark survey that recognizes employers of choice for lesbian, gay, bisexual, and transgender people.

We’re proud of our employees’ efforts in and commitment to diversity—nonetheless, we have more work ahead. Embed- ding the principles of diversity and inclusion in everything we do is essential to achieving Citigroup’s goal to be the most respected global ﬁ nancial services company. We look forward to making even more progress in 2006.

Sincerely,

Ana Duarte McCarthy For our employees, we want to be the employer of choice.

Citigroup values a work environment where diversity is embraced, where people are promoted on their merits, and where people treat each other with respect and dignity. Around the world, we are committed to being a company where the best people want to work; where opportunities to develop are widely available; where innovation and an entrepreneurial spirit are valued; and where employees are encouraged to fulﬁ ll their professional and personal goals. ﬁ ve

Management Accountability At Citigroup, our diversity is a source of strength for our people and Diversity Councils our businesses, and enhancing our Citigroup’s diversity councils are diversity is a core component of our fundamental to the successful Attracting Talent management practices. implementation of our overall diversity We are working to ensure that our strategy. The Citigroup Diversity workforce—at all levels—is Since 2002, Citigroup businesses and Operating Council, formed in 2000, representative of the diverse managers have been required to is comprised of senior diversity and populations we serve and that we develop annual diversity plans and, Human Resources leaders from core develop a diverse pool of candidates through quarterly reviews, have been businesses and regions. It meets for senior management opportunities. held accountable for progress against biweekly to review progress against those plans. These reviews culminate our strategy, share best practices, Attracting and retaining diverse in an annual review of our franchise and align policies globally. graduate, professional, and efforts with our full Board of undergraduate talent ensure a leader- Directors. In total, 162 diversity In 2005, we continued to promote ship pipeline that reﬂ ects our clients reviews were conducted in our diversity globally through 24 business and the communities where we do businesses in 2005. diversity councils, in which business business. In 2005, we continued to leadership and employees from strengthen our relationships with our Management Committee members various levels and functional groups longtime association partners while are responsible for attending diversity develop and execute initiatives. working to develop new relationships training and serving as mentors to to strengthen and diversify our more junior employees. They are also The councils focus on gender along recruiting efforts. We also work with encouraged to be personally involved with other dimensions of diversity, select undergraduate and graduate as business champions of diversity such as disability, ethnicity, race, or schools to attract and recruit diverse initiatives, including business sexual orientation. The Global students. Building successful diversity councils and employee Consumer Group and Corporate and relationships with the career networks. Senior managers’ overall Investment Banking diversity councils placement ofﬁ ces at these schools efforts are linked to compensation in India were among the new councils has been instrumental in our search and are part of the performance launched in 2005. for top talent. appraisal process launched in 2005 for Citigroup’s top 3,000 managers. I’ve had several very good managers during my 25 years at Citigroup; each contributed greatly to my career advancement. As a manager myself, I’ve been a strong supporter of diversity and inclusion initiatives in our organization and I work to create an environment that welcomes different perspectives. Many managers are now conscious of diversity as they make hiring and promotion decisions and we’ve implemented programs to attract more diverse people to the organization and support their career development. The result for everyone is a more open and inclusive workplace, which in our case has led to increased productivity. While we’ve demonstrated leadership and communicated how serious we are about diversity and inclusion, there’s always room to improve. HORACE DERRICK CORPORATE AND INVESTMENT BANKING

Two important principles I learned early in my career were to take full responsibility for my own success and to value people as my most important resource. eight

Attracting Diverse Graduates In 2005, Citigroup continued to build Attracting Diverse and Professionals our partnership with Management Undergraduates Since 1995, we’ve placed emphasis Leadership for Tomorrow (MLT), Citigroup continued its longtime on building cross-business a nonprofi t organization focused on partnership with INROADS and the sponsorship of two national partners increasing the rate of minority Sponsors for Educational Opportunity within the U.S., the National Black students’ admission to top-tier (SEO) programs through which we MBA Association (NBMBAA) and the business schools. Citigroup, a hire diverse undergraduates for National Society of Hispanic MBAs corporate partner since 2003, is the summer internships. In 2005, we (NSHMBA). In 2005, we marked the lead fi nancial services sponsor of the sponsored 65 INROADS interns in tenth year of our partnership with Citigroup Career Transition and various U.S. metropolitan areas and each organization. Citigroup contin- Leadership Seminar, geared toward Mexico. Out of 12 graduating interns, ues to be one of the top corporate students who have been accepted to fi ve students accepted offers of recruiters from both organizations’ MBA programs. employment. This year, INROADS professional and MBA recruiting celebrated its 20th anniversary and events and serves on their corporate Citigroup hosted the four-day seminar recognized Citigroup for our continu- advisory boards. Our employees also in partnership with Booz Allen, ous support of INROADS and its work closely with the organizations’ PepsiCo, and Viacom. The seminar mission with the Frank C. Carr award. national offi ces and local affi liates. allowed students to learn about Citigroup managers and recruiters different industries and job In 2005, 25 SEO interns worked in from 34 businesses attended the opportunities from the sponsoring Corporate and Investment Banking organizations’ annual career fairs, companies. In 2005, 104 students in the U.S. The SEO Career Program, which attract many diverse MBAs were involved in the program and begun in 1980 with Citigroup as a and professionals. We hired 36 12 pre-MBA students were hired by founding member, has been one of individuals from the conferences Citigroup for summer internships. the most effective sources of diverse in 2005—a 16 percent increase Citigroup is also engaged with MLT’s undergraduate candidates in the U.S. over 2004. undergraduate program, the Career In addition to recruiting from our 25 Prep and Job Placement Program, SEO interns, the program allowed In addition, Citigroup remained a and fi ve undergraduates from this Citigroup to recruit from a broader set lead sponsor for two minority MBA program were hired in Corporate and of more than 200 SEO interns who fellowship organizations: the Investment Banking. We are also worked at major investment banks Consortium for Graduate Study in pleased that content from Citigroup’s across Wall Street. Management and the Robert Toigo fi nancial education program has been Foundation. Four candidates from added to the MLT high school the Consortium and two from Toigo program’s curriculum. accepted offers of employment with Citigroup. nine

In the U.K., Citigroup is a founding Reaching Out to LGBT Talent Expanding Efforts member of the SEO London program, Our outreach to the lesbian, gay, to Recruit Women initiated in 2001, and we continued bisexual, and transgender (LGBT) Citigroup continues to work to to develop this relationship by hosting community continued in 2005. recruit more women through our ten SEO interns in our Corporate and In the U.S., Citigroup organized and ongoing partnership with Women Investment Banking London offi ces in participated in four MBA receptions for Hire and its recruiting fairs in 2005. As a result of our efforts, ten in Boston, Chicago, New York City, fi ve U.S. cities—Atlanta, Dallas, graduating SEO interns in the and Philadelphia to recruit LGBT New York, Tampa, and Washington. U.S. and four in London accepted students at eight schools: Stern, We also recruited talent through a offers of employment and will join Chicago, Columbia, Harvard, Kellogg, new initiative focusing on women more than 30 SEO alumni already Sloan, Tuck, and Wharton. In returning to work, “When ‘Mother’ Is working at Citigroup. addition, Citigroup was an event On Your Resume.” sponsor at Reaching Out MBA Attracting People Conferences in Boston and Chicago. Citigroup is involved in many on- with Disabilities This year, 33 employees were in campus women’s efforts, including In the U.K., we launched a attendance. Citigroup provided the Michigan Women in Leadership collaborative venture with Mencap, speakers for four panels and Conference, the Stern Women in the U.K.’s leading organization for employees delivered opening Business Conference, and the people with learning disabilities, and remarks at two separate events. Wharton Women in Business Pitney Bowes, our management Conference. We also participated in services provider. The pilot program, In the U.K., Citigroup was the a new venture, the National WorkRight, aims to give people with fi rst fi nancial institution to target Association of Women MBAs learning disabilities job placement the LGBT student networks at (NAWMBA), that provided a forum that may lead to full-time job schools such as Oxford, Cambridge, to educate MBA-level women on opportunities. An online interview the London School of Economics, the industries and job opportunities guide for helping students with Imperial College, and Edinburgh. In that would be available to them disabilities through the recruiting all, more than 200 students attended upon graduation. process was also created in the U.K. our various recruiting events. Our Corporate and Investment In recognition of Disability Awareness “Out in the City,” hosted by Citigroup Banking business’s diversity efforts in Month, Citigroup employees in and eight other leading fi nancial the U.K. were recognized in 2005 New York mentored more than 20 services companies, offers unique when they received the 2005 City students and professionals with insight into what a career in Focus Award from Opportunity Now, disabilities on Disability Mentor Day. investment banking could offer to the leading U.K. organization This program offers people with LGBT students from across the U.K. dedicated to promoting gender disabilities the chance to learn about equality in the workplace. The award career and employment opportunities recognized our holistic approach to in fi nancial services and to meet one- recruiting, identifying, and developing on-one with mentors who offer insight high-potential female employees. and advice about career paths. MARIA FERNANDA PIÑA GLOBAL CONSUMER GROUP

Through my internship I was able to put the theory I learned in college into practice.

A year and a half later, I’m an employee. I was one of the ﬁ rst INROADS interns at Banamex. It was a life- changing opportunity. It provided me with a perspective that one cannot get inside a classroom. In addition to learning how to calculate interest rates and how trusts function, I also learned new skills in marketing, which was my area of study at university. I received constant guidance and support from Banamex employees and INROADS staff. I wasn’t just getting tips on how to do my job better; I was getting advice on how to plan my career. They even helped me ﬁ ne- tune a couple of projects for class. I’m grateful that Banamex made the commitment to sponsor INROADS interns. And now that I’m working in the marketing and publicity department, I look forward to doing everything I can to help other interns succeed here. twelve

Also in the U.K., our recruitment employees are involved in a mentor- alumni. Citigroup, a sponsor of BAI team organized an open house, ing relationship coordinated through since the program’s inception in “Careers in the Citi,” for teenage the company, including an open 1971, has honored 123 employees women from ten schools. The goals mentoring program that pairs an to date through the program. In were two-fold: increase the employee with a mentor online. 2005, we were recognized for our awareness of career opportunities long-term commitment to the Harlem in fi nance and increase the profi le We have successfully worked with YMCA by receiving the BAI of Citigroup. other organizations to help develop Chairman’s Circle Award. the leadership skills of our diverse Workforce Development employees and provide unique Work Environment We are working to help our employ- mentoring opportunities. Since 2002, We strive to make Citigroup ees build productive and rewarding Citigroup has nominated emerging a great place to work, a place careers by providing a wide array African-American leaders to partici- where diversity is valued and of workforce development and pate in the Executive Leadership people feel respected regardless training programs. Council’s (ELC) Mid-Level Managers of their differences. Symposium, held every year in Every year, to promote the develop- Washington, D.C. A national member- We encourage the values of diversity ment of a diverse pool of future ship organization comprised of and inclusion through diversity leaders, we assess our company’s top senior-level African-American training, by supporting employee talent, including the positions executives from U.S. Fortune 500 networks, by celebrating the rich of women globally and minorities corporations, ELC provides a forum and diverse cultural heritage of within the U.S. for offering perspective and direction our employees, and by offering on national and international work/life programs. Our CFO, Sallie Krawcheck, is economic and public policy issues. business sponsor of the Citigroup In 2005, 48 of our employees In 2005, Citigroup launched a new Women’s Initiative, a new global attended the program that included a initiative on fl exible work that featured effort that will align 27 different networking session with senior global guidelines that aligned our women’s groups. The Initiative Citigroup African-American leaders. existing policies. We also launched an will let the groups share best intranet site that hosts the guidelines practices that foster and promote Citigroup also sponsored the and tools to use when discussing the the development of women through- inaugural Harlem YMCA’s Black potential for fl exible work. Training out the organization. Achievers in Industry (BAI) was provided for Human Resources Leadership Summit, a professional professionals and managers to We promote employee development development event for 2005 BAI increase awareness and build skills through informal networking and honorees as well as past recipients. for managing fl exible work at more structured mentoring initiatives. The summit was created as a forum Citigroup. Human Resources offi cers Our leadership has embraced to discuss issues that challenge in Banamex and our Latin American mentoring: 78 percent of our African-American professionals in businesses, as well as those in Turkey Management Committee members business, develop strategies to and countries in the Middle East and participate in mentoring relationships improve leadership skills, and foster Africa, were among the fi rst to partici- and more than 4,600 of our professional networks with BAI pate in the global training effort. thirteen

Flexible Work training for managers Citigroup Employee Networks exist in A sample of activities conducted by and Human Resources professionals 12 cities in the U.K. and the U.S. networks in 2005 include: will continue in 2006 to further In 2005, fi ve new networks were ■ African Heritage—NYC provided execute the initiative. formed, bringing our total to 26. fi nancial education to 227 adults in Another 18 groups are now in partnership with the Citigroup- Training and Feedback formation. Participation grew to more sponsored New York Urban We continue to make strong than 8,200 employees, a 58 percent League, a nonprofi t social service progress in providing diversity increase over 2004. Recognized U.S. organization focused on improving training throughout our businesses groups include: African Heritage, social and economic conditions globally. Ninety-three percent of our Asian Pacifi c Heritage, Hispanic, and opportunities for African- Management Committee members Pride (a group focused on the Americans and other people who have participated. lesbian, gay, bisexual, and transgen- face barriers to full participation in der communities), Women, and American society. During 2005, employees in Ireland, Working Parents. In the U.K., Pride, ■ Asian Pacifi c Heritage—NYC Japan, the Philippines, Singapore, Women, Working Parents, and a organized a Diwali event that the U.K., and the U.S. attended such multicultural network called Roots celebrated Indian dance, music, training courses as “Valuing have been recognized. Our Business and food. Diversity,” “Respect at Work,” Heads—Bob Druskin, President and ■ Hispanic—Dallas/Fort Worth “Diversity Awareness,” and “Respect- CEO, Corporate and Investment organized a book drive in the ing Diversity in the Workplace.” Banking; Ajay Banga, Chairman and local Citigroup worksites and CEO, Global Consumer Group – presented more than 150 business- We value our employees’ opinions International; and Steve Freiberg, related books it collected to the about their workplace and encourage Chairman and CEO, Global Consumer Greater Dallas Hispanic Chamber them to make their voices heard. Group – North America—are among of Commerce. One of the ways we assess trends the sponsors. Twenty-nine Human ■ Pride—London assisted local in the work environment and Resources offi cers from across our Citigroup businesses by management practices is through businesses serve as liaisons. participating in recruiting efforts our annual Voice of the Employee at a university career fair sponsored survey (VOE). VOE results for 2005 Networks provide a variety of by Citigroup. indicated signifi cant progress in the programs and services for their ■ Women—St. Louis hosted a three- area of diversity. members by focusing on heritage part public speaking event at which and community. The networks help a senior manager provided Employee Networks businesses plan heritage month information about and techniques Citigroup’s Employee Networks are celebrations and other diversity- for delivering effective presentations. groups initiated and led by focused awareness activities for all ■ Working Parents—London offered employees. The networks are open to local employees. The groups also a series of educational events, all employees and provide them with volunteer in the external community attended by more than 375 an opportunity to share common and represent the company at a employees; topics included experiences and build awareness of variety of events. “Internet Safety for Children,” diverse cultures and communities. “Child and Baby Life Support Training,” and “Juggling Parenthood—Finding Time and Balance.” People don’t focus on who I’m not.

They focus on who I am.

ANDREW ROMANO CITIGROUP OPERATIONS AND TECHNOLOGY One summer I helped build a library in Nicaragua. Even though I didn’t speak Spanish, I built a strong connection with the people in the town where I stayed. The experience taught me that sometimes just getting involved can make a big difference. I take the same approach at work. I’m not Asian, but I’m a member of the Asian employee network in New York City. I’m not African-American or Latino, but I am involved in those networks, too. So far in my career here, I’ve felt that I’ve always had a seat at the table professionally and personally. Whether it was being involved in negotiating one of the largest software contracts we’ve ever signed or helping plan Lunar New Year celebrations, my colleagues have demonstrated a lot of respect for my work and my ideas. I’ve been challenged, engaged, coached, and mentored by people at all levels. You can’t ask for much more than that. sixteen

Celebrating Our Heritage Awareness Week launched by the In 2005, LifeWorks resources also In the U.S., Citigroup sponsored more Municipal Securities Division (MSD) supported employees and their than 67 programs in conjunction with Diversity Committee. All West Coast families coping with military heritage months in 2005. The array of MSD employees had the opportunity deployment and natural disasters. programs, often planned in partner- to review Citigroup diversity literature ship with our employee networks, distributed through fl iers and e-mail A Variety of Dependent helps employees learn about the and to participate in a developmental Care Options achievements of multicultural workshop featuring executive coach Citigroup offers full-time and back-up groups and celebrate the diversity Peggy Klaus in Los Angeles. child care programs and elder care of our organization. management services and back-up Work/Life Programs programs to more than 93,000 Examples of these programs include Citigroup recognizes that our employees in Europe and the U.S. Women’s History Month, when our employees strive to succeed in their In addition, Citigroup owns or employees had the opportunity to work and their personal lives. participates in 12 child care centers hear a keynote address by the The needs of one often affect the in Florida, Maryland, Missouri, Honorable Ann Richards, former needs of the other. That’s why we Nevada, New York, South Dakota, governor of Texas. During Disability continually seek to make tools and and Texas, as well as in Dublin, Awareness Month, employees were programs available to our employees Ireland, and London, England. An inspired by a successful Certifi ed around the world to help them meet additional back-up center is under Public Accountant and fi nancial the challenges of both their work and construction at Citigroup’s new analyst, Lisa Fittipaldi, who suddenly their personal responsibilities. Warren, NJ, site and is scheduled to lost her sight in 1993 at the age of 47 open in 2006. ® and has since become a world- The LifeWorks Program at renowned artist, author, and founder Citigroup In the U.S., employees in of The Mind’s Eye Foundation—a Citigroup’s LifeWorks program helps participating businesses in 18 states nonprofi t organization that serves as employees and their dependents have access to a back-up child and an advocate for blind, visually better manage the demands that elder care program that helps them to impaired, and hearing-impaired people face throughout their lifetimes. identify and pay for care when their children in the U.S. Open to employees, their partners, primary dependent care is and dependents in Canada, Puerto unavailable. U.S. employees may Heritage and awareness programs Rico, and the U.S., the program is also receive discounts when they use were also conducted during available through a toll-free telephone leading national child care centers. Citigroup’s U.K. Diversity Week 2005, number and via the Web around the More than 6,600 children and older an annual series of events that aims clock. It provides access to family members of employees to raise awareness of, and build information, research, and resources, are served through these programs. support for, diversity across the along with customized referrals to Employees in the U.S. also have organization. The week included help employees achieve practical access to elder care management a range of highly innovative and solutions on a wide variety of topics, services to assist them when challenging workshops. This effort such as parenting/child care, their elder care needs become was mirrored in the U.S. at the managing the needs of older adults, more critical. inaugural West Coast Diversity self-care, adoption, education, and legal issues. seventeen

Our Banamex business in Mexico helped our employees with their dependent care concerns by working with an external vendor to build a Web-based search engine that assists employees to ﬁ nd child care service providers that best suit their needs and provides information on discounts for certain providers. The search engine has been highly successful, with more than 87,000 visits through the end of 2005.

Citigroup offers the Employee Assistance Program (EAP) to employees and their immediate family members in Australia, Canada, Ireland, Puerto Rico, South Africa, Spain, the U.K., and the U.S., as well as to expatriate staff around the world who may need assistance dealing with personal problems. Access to the EAP is available around the clock via toll-free telephone numbers. Callers can receive short-term conﬁ dential counseling and, for longer-term needs, referrals to professionally trained counselors and other qualiﬁ ed service providers on a wide range of personal, family, and work issues, including alcohol or chemical dependency, relationship issues, or work-related problems.

At the request of Citigroup’s management, the U.S. EAP facilitated 24 worksite sessions and provided resources for employees and their family members coping with the devastation wrought by the hurri- canes in the Southeast and Gulf Coast regions. Some of my most important work is done outside the ofﬁ ce.

NAKUL KAPUR CORPORATE AND INVESTMENT BANKING When you’re the father of two young children, every hour counts. Citigroup’s Flexible Work Guidelines have made it possible for me to work from home one day a week and save two hours of commuting time. Two extra hours a week means I’m there for my kids in the morning, at lunch, and in the evening— times that I’m not there during my other working days. If I need to be in the ofﬁ ce for an important meeting on a day that I’m scheduled to work from home, I simply trade that day for another. My clients, manager, and colleagues have been very supportive and think the arrangement works very well. Indeed, many are thinking about trying it themselves. For our clients, we want to be the service provider of choice.

Citigroup strives to deliver products and services to our clients that reﬂ ect both our global reach and our deep local roots in every market where we operate. The diversity of our employees enables us to better understand our clients, while the breadth of our product offerings allows us to serve them better. twenty-one

African-American Clients We continue to focus our efforts on reaching African-American Our new Financial Center in consumers through a combination Mitchellville, MD, opened in May to of activities that include community great acclaim and placed us at the partnerships, event participation, heart of a thriving and growing through March. To commemorate media advertising, and direct community in the Washington, D.C., the Lunar New Year, 24-carat gold, mail marketing. metropolitan area. collectible zodiac pendants were offered to new depositors. In 2005, the Smith Barney African- Our Citibank at Work in the American Initiative hosted Community team has been able to Home-buying seminars, including our educational symposiums focused establish partnerships with a number American Homeownership program on wealth management for affl uent of agencies that serve immigrant for immigrants, were conducted in- African-Americans in Baltimore, refugees and asylum seekers to language (Mandarin and Cantonese) Birmingham, and St. Louis. The focus provide their otherwise vulnerable throughout the year. These well- of each symposium was “Preserving clients access to fi nancial education attended seminars provided the Your Heritage—Building Upon a and the mainstream fi nancial system. community with information on Legacy of Wealth & Values.” A signifi cant number of these building a credit history and the The Initiative also hosted a immigrants are from Africa and the overall homeownership process. symposium, “Strategies for Living Caribbean. Citibank was also a Well & Investing in Our Well-being,” sponsor of “Kreyol Fest,” organized Serving Asian-American clients who which focused on African-American by the Haitian Times in New York. prefer to speak in-language is women’s health issues. The event, important to Citibank. The toll-free held in Atlanta, celebrated infl uential, CitiMortgage worked with the U.S. Asian Citiphone Client Service Unit is accomplished women in business, Department of Housing and Urban open to serve our Asian-American the community, and society. Development, Home Depot, and the Citibank clients from coast to coast National Newspaper Association to with extended hours, including Several Citibank Financial Centers produce inserts on homeownership Saturdays. Chinese-, Japanese-, hosted a variety of Black History that were distributed through 50 and Korean-speaking representatives Month celebrations. Not only did African-American-owned and are well-versed in our suite of these events show an appreciation of -targeted newspapers. In addition, products and services. In addition, and highlight African-American homebuyer education seminars were a full-color bilingual service aid is culture, but they gave consumers held in Atlanta, Chicago, Dallas, and available to Chinese language- access to a wide range of fi nancial Washington, D.C. dependent clients to assist them in products. Once again our New York reading their monthly checking region hosted the “Harlem Is” Asian-American Clients account statements. exhibition in conjunction with As part of our continued commitment Community Works. to the Asian-American community, Citibank Financial Centers celebrated the Year of the Rooster from January Every day I meet with all kinds of clients, from every walk of life, each sharing the same goal—to enjoy the freedom that comes with fi nancial stability.

LES NETTER GLOBAL WEALTH MANAGEMENT

I’ve been helping clients manage their money for more than 30 years, the last eight and a half of them at Citigroup. When I joined the organization, I had to develop a plan to expand my client base. I focused on mid-career professionals and Certiﬁ ed Public Accountants, because I had spent the bulk of my career as a CPA. As I networked with organizations such as the National Association of Black Accoun- tants and Junior Achievement and participated in several of our own target- marketing initiatives to women, Hispanics, and African-Americans, I built up a diverse client base. Whoever they are or whatever their background, each of my clients has unique circumstances, needs, and aspirations; they all want to preserve and grow their assets.

twenty-four

Hispanic Clients In 2005, the Smith Barney Hispanic more than 230,000 households in According to the U.S. Census Initiative hosted educational both June and December. Bureau, Hispanics are the largest— symposiums focused on wealth In 2005, Citigroup became a and fastest-growing—minority management for affl uent Hispanic platinum-level national sponsor of the population in the U.S. There are 40 Americans in Houston, Los Angeles, Human Rights Campaign, the largest million Latinos in the U.S. with a Miami, and New York City. The equality advocacy group for the LGBT purchasing power of $700 billion. Initiative focuses on supporting arts community in the U.S. Support for Close to 50 percent of Hispanics are and cultural events that promote HRC included sponsoring 23 local unbanked or underbanked. preservation of Hispanic heritage annual dinners across the U.S. and while also emphasizing the impor- sending representatives to dinners in In early 2003, our Global Consumer tance of Latin American markets to several client markets, including Group business increased Citigroup’s the U.S. economy. Most recently, Atlanta, Chicago, Dallas/Fort Worth, share of the Hispanic market in the Smith Barney co-sponsored Sotheby’s Los Angeles, New York City, U.S. by implementing a client-centric exhibition of Latin American art and St. Louis, San Antonio, San Fran- strategy focused on better serving held a symposium, “The Art of Invest- cisco, and the national dinner in Hispanic consumers. New initiatives ing.” Guest speaker Arturo Sarukhan, Washington, D.C. Citigroup was launched in 2005 include: Consul General of Mexico in New featured prominently in the HRC’s ■ Expanded our money remittance York, discussed bilateral relations publication “Buying for Equality—A services by offering a remittance between Mexico and the U.S. In Guide to Companies and Products service to Ecuador from some of addition, Smith Barney was an under- That Support Gay, Lesbian, Bisexual, our branches in New York. We will writer for the Houston Museum of and Transgender Equality.” roll out the service nationwide in the Fine Arts’ fi rst Latin American U.S. during 2006. gala/auction. Women Clients ■ Developed a personal loan offer for In 2005, the Smith Barney Women’s people without credit history at both Lesbian, Gay, Bisexual, Initiative hosted educational Citibank and CitiFinancial. and Transgender Clients symposiums focused on women’s ■ Offered mortgage loans for clients For the fourth consecutive year, the lifestyle issues. In New York City without credit history through Citibank Retail Distribution Group and Washington, D.C., programs CitiMortgage. sponsored the New York City Gay & were held in conjunction with the Lesbian Business Expo, which Susan G. Komen Breast Cancer As a result of this effort, the Hispanic reached more than 20,000 people. Foundation. These events educated community is one of Citibank’s In April, for the second year, it also women on health issues, especially fastest-growing client segments. sponsored the Miami Gay & Lesbian breast cancer. Symposiums were Hispanic households represent 19 Film Festival. In San Francisco, a also held in Armonk, NY, and percent of Citibank’s total client Pride Expo was sponsored in June, as Phoenix, AZ, with a focus on “Striking households and, in 2005, the was a private CitiGold reception and a Balance” (fi nancial empowerment) Hispanic segment contributed 23 opening night of the Broadway and “Women Regaining Balance” percent of that business’s new client musical “Wicked” for the LGBT (for women going through life household acquisitions. community in August. A joint transitions such as divorce, partnership mailing with the Human widowhood, or caring for a terminally Rights Campaign (HRC) reached ill spouse). Most recently, the Initiative sponsored the California Governor and First Lady’s twenty-fi ve

Conference on Women and Families, In 2005, Women and Company, which promoted personal and in partnership with the Citigroup professional empowerment through Foundation, launched the Women education on philanthropy, commu- and Company Microenterprise Boost nity involvement, and small Program, administered by the business development. Association for Enterprise Opportunity. This innovative program Featured high-profi le speakers provides equity awards of $1,000 to included Barbara Stanny, author; low- and moderate-income women Jacalyn Barnett, Esq., matrimonial entrepreneurs. Access to capital is attorney; and Dr. Susan Love, crucial to growing businesses, and President and Medical Director, Dr. the program is designed to have a Susan Love Research Foundation. high impact on the success and The Smith Barney Women’s Initiative strength of the women’s businesses. is designed to educate women on the issues that affect them personally Seventy-two women from urban and while teaching them the importance rural communities throughout the of fi nancial planning. U.S. received the awards in 2005, with special outreach made to racial Women and Company®, a member- and ethnic minorities and women ship program designed around with disabilities. The women used the women’s fi nancial needs, continued equity awards for a variety of to expand its fi nancial education purposes, including technology, program in 2005. Women and marketing, inventory, additional Company conducted 29 conference equipment, and professional services. calls headed by notable fi nancial The program has been very experts; hosted 20 educational successful, with almost all of the “Master Classes” in major metropoli- recipients’ businesses showing tan markets, from New York to increased revenue since the awards Los Angeles; and co-sponsored with were given. Citibank and Smith Barney more than 125 educational seminars for women and their families across the U.S. In addition, Women and Company published some 26 information bulletins containing articles and tips addressing fi nancial topics of particular concern to women. For our suppliers, we want to be the business partner of choice.

Citigroup works to create mutually beneﬁ cial business relationships with minorities, women, disabled veterans, and other people with disabilities. We recognize that working with a wide range of professionals, suppliers, and consultants strengthens the communities we serve while creating value for our shareholders. twenty-seven

Supplier Diversity Spend- ing Increases 200 Percent in Four Years Citigroup’s Supplier Diversity Program European Supplier Diversity experienced another year of growth. Business Forum Overall spending with business Representatives from Citigroup enterprises owned by minorities, Supplier Diversity, our U.K. diversity Citigroup was among the presenters women, disabled veterans, and other team, and our businesses in Europe, at the 2005 European Leaders in people with disabilities in the U.S. the Middle East, and Africa serve on Procurement Forum in Amsterdam, grew to $950 million. This fi gure was the industry-wide European Supplier and on a panel at the Tenth Annual 19 percent ahead of our 2005 plan to Diversity Business Forum. Estab- European Federation of Black reach $800 million. Our growth lished in 2004, the Forum aims to Business Owners Global Summit resulted from combining procure- introduce supplier diversity to small Business Expo in London. In addition, ment-driven spending in commodity and medium-sized enterprises owned an effort is under way to build areas with new initiatives in the by ethnic minorities, women, relationships with intermediary professional services sectors of immigrants, and the disabled in fi ve groups that can assist us in expand- our businesses. European countries over the next ing our outreach to more diverse three to four years. suppliers in the U.K. A Business Priority Our Supplier Diversity Program has In 2005, Citigroup was selected to Diverse Suppliers Represented expanded its role within Citigroup by chair the Forum’s newly created in Building New Citigroup Tower fostering greater participation by the Board of Directors, which will oversee During 2005, Citigroup broke ground company’s businesses and working a number of projects in Germany and for a new, 15-story offi ce tower in with our community relations teams the U.K. These projects include Long Island City, NY, that will house on various programs. During 2005, completion of a corporate members’ more than 1,500 employees. the Supplier Diversity team made survey to identify potential diverse Citigroup Supplier Diversity, working presentations to key community suppliers; hosting a Prime Contrac- with Citigroup’s Real Estate and advocacy groups in support of tors and Supplier Diversity in Action Facilities Business, has set a goal to Citigroup’s diversity commitment to meeting to introduce supplier have 20 percent of those contracted our local communities. The collabora- diversity to major U.K. companies; for the construction project be tion fostered supplier relationships and hosting a presentation by a well- diverse suppliers. with organizations that included the respected intermediary of London’s Greenlining Institute, Hispanic Women’s Enterprise and Prowess and Chamber of Commerce, the National the Ethnic Minority Business Forum. Association for the Advancement of The Forum has also launched Colored People (NAACP), Rainbow a public Web site PUSH, and TELACU, as well as with (www.europeansupplierdiversity.com) Citibank’s California Community and was highlighted in European Advisory Committee on Supplier Leaders in Procurement magazine. Diversity and the Citigroup Community Fund. When diverse suppliers can effectively build relationships with major companies, we can compete toe-to-toe with larger competitors and win business on our merits.

DEAN WHITEFIELD PRESIDENT & CEO EXECUTIVE TECHNOLOGY, INC. I started my company three years ago. I sell computer equipment and provide resources and support to keep it running smoothly. I knew from the start that the ability to serve America’s largest companies with products and services on a national basis required access to capital well beyond what was available to me at the time. So I entered a strategic alliance with a major computer reseller and, together, we went after new business. Our fi rst project with Citigroup was to deploy desktops, laptops, monitors, and support for 5,000 people. Since then, we’ve provided the same services to an additional 30,000. My business has grown from six to 16 employees and we opened a third offi ce. Although the playing fi eld is still far from level, our work with Citigroup has opened a lot of doors for my company. For our communities, we want to be the neighbor of choice.

Citigroup believes it has a responsibility to make a difference in the neighborhoods in which we live and work around the world. We reach out to and form relationships with nonproﬁ t organizations, civic groups, educational institutions, and local governments representing the diverse nature of these communities. thirty-one

Global Community With Citigroup’s extensive global presence comes the responsibility to make a difference where we live and sponsorships around the world. The work. Citigroup’s total philanthropic programs included “The Adventures giving from our Foundation and our of Agent Penny and Will Power,” a businesses combined reached more new campaign that reached nearly Philanthropy and Volunteerism than $126 million in 2005. During the 50,000 children in Asia. In addition, As a leading private sector supporter year, Citigroup’s businesses also our businesses funded such initia- of microfi nance, the Citigroup provided fi nancing and made other tives as “Saber Cuenta: Knowledge Foundation has provided nearly investments totaling nearly $35 billion Counts,” a national collaborative $27 million in funding to microfi - to support low- and moderate-income project in Mexico among Banamex, nance institutions (MFIs) and MFI (LMI) families and communities in local government, and nongovern- networks globally over the past the U.S. To help ensure that money is mental agencies that benefi ts broad fi ve years. available to LMI families that wish to segments of the Mexican population purchase a home, Citigroup commit- through employment programs, In 2005, we also continued to ted in 2003 to make $200 billion entrepreneurship training, and support our employees’ community available for affordable mortgage fi nancial education. volunteer efforts, many of them in lending in the U.S. through 2010. communities hit by natural disas- By the end of 2005, we loaned nearly Sustainable Development ters—Latin America, Pakistan, South $110 billion of the total. A founding member of the Equator Asia, and the U.S. We committed Principles, Citigroup strengthened its more than $30 million to disaster In 2005, Citigroup was again efforts to implement the Principles relief and to rebuilding affected areas. reaffi rmed as a component of the uniformly by strengthening our risk Dow Jones Sustainability World Index, policies and enhancing our Environ- Our Chairman, Sandy Weill, was which recognizes companies in the mental and Social Risk Management among fi ve private sector leaders top ten percent of environmental, training. The Equator Principles are asked to lead a massive effort to social, and economic performance. voluntary guidelines based on World raise resources to help those affected We also were reaffi rmed on the Bank and International Finance by the earthquake that struck FTSE4Good Index for having met Corporation policies to evaluate South Asia in 2005. Citigroup, the specifi c criteria relating to environmental and social risks related Citigroup Foundation, and our environmental sustainability, to fi nancing development projects. employees pledged up to $7 million corporate citizenship, shareholder toward relief efforts and provided returns, and support of human rights. Also in 2005, Citigroup’s Sustainable volunteer support. Development Investment Private Financial Education Equity Program invested in Building on the commitment we Balrampur Chini Mills, Ltd., to help made in 2004 to invest $200 million the Indian company expand its over ten years in support of fi nancial manufacturing of ethanol as a fuel education, in 2005 Citigroup awarded additive. Citigroup also committed close to $30 million in grants and to reducing its own greenhouse gas emissions ten percent globally by 2011. I’ve learned that sometimes just getting involved can make a big difference.

SEIKO SHIGEHISA GLOBAL CONSUMER GROUP Volunteerism is a trend that is beginning to catch on in Japan. I had done some volunteer work at my child’s school, but through my job with Citigroup’s consumer fi nance business in Japan I’ve been able to get involved in many community events, such as organizing a blanket drive to help victims of the earthquake in Pakistan, a charity bazaar that we hold twice a year, the YMCA charity run, and the Japan Blind Marathon. The smiles on the faces of the blind runners and their words of thanks every time we cheered for them made me feel more self-aware and more enlightened. These are some of the unexpected benefi ts of volunteering that stay with me long after an event is over or a race is run. I view volunteering as an embrace of my community. It really makes me feel engaged and I’m always looking forward to the next event. 2005 Diversity Awards & Recognition thirty-fi ve

TOP 50 COMPANIES YWCA ACADEMY CITY FOCUS AWARD FOR DIVERSITY OF WOMEN LEADERS Opportunity Now, City Focus Award DiversityInc magazine, Citigroup Citigroup’s Patricia A. David, for commitment to female talent ranked No. 3 company for Diversity Ana Duarte McCarthy, and Loretta D. Moseman were inducted EUROPEAN FEDERATION OF CORPORATE 100 into the YWCA City of New York’s BLACK BUSINESS OWNERS Hispanic magazine Academy of Women Leaders Citigroup won the “Corporate Mainstream Category” of the 100 BEST COMPANIES THE 150 BEST COMPANIES Black Women in Business Awards FOR WORKING MOTHERS TO WORK FOR for supporting the development For the 15th time, Working Mother Exame magazine and progress of black magazine has named Citigroup to its female employees list of “100 Best Companies for TOP 40 COMPANIES Working Mothers” FOR HISPANICS TOP 50 EMPLOYERS Hispanic Business magazine, FOR WOMEN CORPORATE EQUALITY INDEX Citigroup No. 9 Fortune magazine Citigroup scored 100 percent on the Human Rights Campaign’s Corporate 30 BEST COMPANIES TOP 50 CORPORATIONS Equality Index FOR DIVERSITY FOR SUPPLIER DIVERSITY Black Enterprise magazine, Hispanic Trends magazine 50 BEST COMPANIES FOR Special Citation for Supplier Diversity LATINAS TO WORK FOR IN GENDER EQUALITY MODEL THE U.S. INROADS—FRANK C. CARR Banamex received a certifi cate from LATINAStyle magazine, Citigroup has AWARD the National Institute of Women been named to LATINAStyle’s list of Citigroup received the fi rst annual recognizing its diversity practices and the top 50 companies for Latinas to Frank C. Carr award, which promotion of equal opportunities for work for in the U.S. every year since recognizes an individual or men and women the list began in 1998 corporation for their work on workforce diversity and in the community THE 25 MOST POWERFUL HARLEM YMCA “SALUTE WOMEN IN BANKING TO BLACK ACHIEVERS GENDERPAC 2005 U.S. Banker, Ellen Alemany, IN INDUSTRY” NATIONAL CORPORATE Executive Vice President, Commercial Citigroup’s Robert Armstrong, Manon ACHIEVEMENT AWARD Business Group, and President & LaRoche, Douglas Robinson, and Gender Public Advocacy Coalition Chief Executive Offi cer, CitiCapital,* Jerry St. Vil were inducted into the (GenderPAC), Citigroup was awarded ranked No. 5 on its annual list Harlem YMCA’s Black Achievers the GenderPAC 2005 National in Industry Corporate Achievement Award for THE 100 MOST the inclusion of “gender identity or POWERFUL WOMEN AMERICA’S TOP ORGANIZA- expression” within its Code Forbes, Sallie Krawcheck, Citigroup TIONS FOR MULTICULTURAL of Conduct CFO, ranked No. 7 on its annual list BUSINESS OPPORTUNITIES DiversityBusiness.com

* In January 2006, Ellen Alemany was named Chief Executive Ofﬁ cer of Global Transaction Services in our Corporate and Investment Banking business. thirty-six

citigroup 2005 u.s. workforce information report

MALE FEMALE AMERICAN AMERICAN JOB CATEGORIES OVERALL WHITE BLACK HISPANIC ASIAN WHITE BLACK HISPANIC ASIAN INDIAN INDIAN Ofﬁ cials & 20,041 8,516 675 713 675 32 7,059 972 802 567 30 Managers Professionals 29,611 11,125 1,164 1,257 3,331 38 7,821 1,733 1,177 1,924 41 Technicians 2,225 969 157 162 230 10 468 75 62 89 3 Sales Workers 20,435 12,733 487 821 695 39 3,864 414 720 642 20 Ofﬁ ce & Clerical 60,878 9,062 2,937 2,516 974 97 27,621 8,635 6,503 2,254 279 Craft Workers 54321033024000 Operatives 928 143 123 79 86 2 226 92 43 130 4 Laborers 10100000000 Service Workers 187 57 33 45 10 0 18 12 10 2 0 TOTALS 134,360 42,637 5,587 5,596 6,004 218 47,079 11,937 9,317 5,608 377 data effective july 2005

Highlights of Key Progress Total minority representation in Citigroup’s U.S. employee population continued to show a positive trend, from 31.9 percent in 2003 to 33.2 percent in 2005, a 1.3 percent representation increase.

Our largest minority group is African-American, which represents 13.0 percent of Citigroup’s U.S. workforce, followed by Hispanic at 11.1 percent, Asian at 8.6 percent, and American Indian at 0.4 percent.

Total minority representation continued to increase in most job categories. In looking at our Ofﬁ cials & Managers and Professional jobs, total minority representation was 21.2 percent in management positions in 2003 and increased to 22.3 percent in 2005, a 1.1 percent representation increase. Representation in Professional jobs rose from 32.5 percent in 2003 to 36.0 percent in 2005, a strong 3.5 percent representation increase.

Citigroup Inc. and its subsidiaries offer Equal Employment Opportunity (EEO) to everyone—regardless of race, gender, gender identity or expression, color, creed, religion, national origin, citizenship, age, disability, marital status, sexual orientation, ancestry, veteran status, and socioeconomic status. Citigroup’s EEO policies apply to all employment practices, including recruiting, hiring, promoting, and training. Citigroup’s commitment to EEO includes the development of Affi rmative Action programs modeled after U.S. federal, state, and local employment laws and regulations. Executives and department managers are responsible for making good-faith efforts to achieve Affi rmative Action goals. The primary responsibility for developing and monitoring each program is assigned to a senior Human Resources offi cer, and progress on Affi rmative Action efforts is regularly reviewed with senior management. employer of choice

Citigroup values a work environment where diversity is embraced, where people are promoted on their merits, and where people treat each other with respect and dignity. Around the world, we are committed to being a company where the best people want to work; where opportunities to develop are widely available; where innovation and an entrepreneurial spirit are valued; and where employees are encouraged to fulﬁ ll their professional and personal goals. service provider of choice

Printed on recycled paper. Design: Citigroup Graphic Communications. “Citigroup” and “company” in this report refer to Citigroup Inc., its subsidiaries, and their affiliates. This Annual Report was printed by a Hispanic-owned firm, one of Citigroup’s approved minority suppliers. citigroup.com ©2006 Citigroup Inc. 181322 4/06 CIT2072